If income is being deemed to an eligible individual or child AND an eligible alien
who meets the student child definition is sponsored by the deemor, THEN any income
used to reduce the eligible alien allocation is reduced first by the student child
earned income exclusion. See SI 01320.500B.3.
Example
George is an SSI eligible child. His mother, Tina, who earned $1,400 in March 2002,
is the sponsor of Juan, an SSI eligible alien who is a student child who earned $1200
in March 2002. When deeming Tina's income to George, the student child earned income
exclusion of $1320 per month would offset the entire amount of Juan's earnings so
the alien allocation would still apply. See SI 01320.500G.5. for examples of the deeming computations for both the eligible child and the eligible
alien in a multiple deeming situation.
Step

Amount

Reason

Parent's Income

$1,400.00

Deemable

Alien Allocation Subtraction

272.00

The SEIE of $1320/month is greater than Juan's earnings, so the alien allocation is
not reduced

Subtotal

$1,128.00


Subtract Exclusions

85.00

$20 general income exclusion + $65 earned income exclusion

Subtotal

$1,043.00


Subtract ½ Remaining Earned income

521.50

(Divide by 2 to compute ½ of remaining income)

Subtract Parent's Allocation

545.00

One parent allocation

Deemed income

$0.00


After computing the countable income considering the alien allocation with the SEIE
exclusion applied, there is no countable deemed income.